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Accounting Policies of Arcuttipore Tea Company Ltd. Company

Mar 31, 2014

1. General:

a) These accounts have been prepared on the historical cost basis and on the basis of going concern.

b) Accounting policies not specifically stated to otherwise are consistent and are in consonance with generally accepted accounting principles.

2. Fixed Assets:

a. Fixed Assets other than revalued assets are stated at cost less depreciation.

b. Revalued assets are shown at net current Replacement Cost.

c. Expenditure on extension of tea planting is capitalised and the same is shown under the head Land (leasehold) and Development Account.

3. Depreciation :

Depreciation is provided on straight-line method at the rates and in the manner specified in Schedule XIV (as amended) to the Companies Act, 1956, and Increase in value of fixed assets due to revaluation is depreciated on straight-line method at the rates specified in the Schedule XIV to the Companies Act 1956 and transferred to Profit & Loss account from Revaluation Reserve.

4. Impairment of Assets

The carrying amounts of cash Generating unit / assets are reviewed at Balance sheet date to determine whether there is any indication of impairment, if any such indication exists, the recoverable amount is estimated as the higher of net selling price and value in use. Impairment loss is recognized wherever carrying amount exceeds recoverable amount.

5. Investment:

Investments are stated at cost, however, provision to diminution in value of shares if any, other than temporary in nature has not been made in the accounts.

6. Recognition of Income & Expenditure:

a. Income and expenses, unless specified otherwise, are recognised on accrual basis.

b. Sales are recognized on passing of property in goods as per the terms of sales on completion of auction in case of auction sales and in case of consignment sale. Sales of tea and green leaf are inclusive of excise and cess duty ,and are net of VAT.

7. Inventories:

a) Stores, Spares and Packing materials are valued at cost on FIFO basis.

b) (i) Finished Goods of Tea as well as green leaf are valued at net realizable value. There in no stock of green leaf at the year end .

ii) The Company has followed valuation of finished goods of tea at net realization value. Pursuant to the Accounting Standard (AS-2) on inventory valuation issued by the Institute of Chartered Accountants of India, inventories are required to be valued at cost or net realizable vale whichever is lower. Considering the nature of business the Management has followed the practice of valuation at net realizable value.

c) Shares held as stock in trade are valued at cost

8. Taxes on Income:

Current Tax is determined as the amount of Tax payable in respect of Taxable Income for the period based on applicable tax rates and laws. Deferred tax is recognised on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods and is measured using Tax rates and laws that have enacted or substantively enacted as on Balance Sheet date. Deferred tax assets are recognised only if there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets will be realised. Such assets are reviewed as at each Balance Sheet date to reassess reliability thereof.

9. Excise Duty and Cess:

Excise duty and Cess on manufactured tea lying in factory at the year end is provided in the accounts. Cess on green leaf for the year has been provided in the accounts

10. Retirement Benefits:

Liability for gratuity & leave encashment is accounted for on cash basis.

11. Borrowing Cost:

Borrowing cost is charged as expenses in the year in which these are incurred.

12. Contingent Liability :

Contingent Liabilities are generally not provided for in the accounts and are separately shown in the notes to accounts.


Mar 31, 2012

1. General:

a) These accounts have been prepared on the historical cost basis and on the basis of going concern.

b) Accounting policies not specifically stated to otherwise are consistent and are in consonance with generally accepted accounting principles.

2. Fixed Assets:

a. Fixed Assets other than revalued assets are stated at cost less depreciation.

b. Revalued assets are shown at net current Replacement Cost.

c. Expenditure on extension of tea planting is capitalised and the same is shown under the head Land (leasehold) and Development Account.

3. Depreciation :

Depreciation is provided on straight-line method at the rates and in the manner specified in Schedule XIV (as amended) to the Companies Act, 1956, and Increase in value of fixed assets due to revaluation is depreciated on straight-line method at the rates specified in the Schedule XIV to the Companies Act 1956 and transferred to Profit & Loss account from Revaluation Reserve.

4. Impairment of Assets

The carrying amounts of cash Generating unit / assets are reviewed at Balance sheet date to determine whether there is any indication of impairment, if any such indication exists, the recoverable amount is estimated as the higher of net selling price and value in use. Impairment loss is recognized wherever carrying amount exceeds recoverable amount.

5. Investment:

Investments are stated at cost, however, provision to diminution in value of shares if any, other than temporary in nature has not been made in the accounts. The Company has no investment at the year - end.

6. Recognition of Income & Expenditure:

a. Income and expenses, unless specified otherwise, are recognised on accrual basis.

b. Sales are net of Taxes if any.

7. Inventories:

a) Stores, Spares and Packing materials are valued at cost on FIFO basis.

b) There is no Finished Goods of Tea as well as green leaf at the year end, hence valuation of the finished products at realizable value , is not applicable.

c) There is no stock of flats at the year end, hence valuation of flat at cost or realizable value whichever is lower, is not applicable.

d) Shares held as stock in trade are valued at cost

8. Taxes on Income:

Current Tax is determined as the amount of Tax payable in respect of Taxable Income for the period based on applicable tax rates and laws. Deferred tax is recognised on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods and is measured using Tax rates and laws that have enacted or substantively enacted as on Balance Sheet date. Deferred tax assets are recognised only if there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets will be realised. Such assets are reviewed as at each Balance Sheet date to reassess reliability thereof.

9. Excise Duty and Cess:

No tea is manufactured during the year .Hence, no Excise duty and Cess on manufactured tea, are provided in the accounts. Cess on green leaf for the year has been provided in the accounts

10. Retirement Benefits:

Liability for gratuity & leave encashment is accounted for on cash basis.

11. Borrowing Cost:

Borrowing cost is charged as expenses in the year in which these are incurred.

12. Contingent Liability :

Contingent Liabilities are generally not provided for in the accounts and are separately shown in the notes to accounts.


Mar 31, 2011

1. Fixed Assets:

Compiled by : Dion Global Solutions

a. Fixed Assets other than revalued assets are stated at cost less depreciation.

b. Revalued assets are shown at net current Replacement Cost.

c. Expenditure on extension of tea planting is capitalised and the same is shown under the head Land (leasehold) and Development Account.

2. Depreciation :

Depreciation is provided on straight-line method at the rates and in the manner specified in Schedule XIV (as amended) to the Companies Act, 1956, and Increase in value of fixed assets due to revaluation is depreciated on straight-line method at the rates specified in the Schedule XIV to the Companies Act 1956 and transferred to Profit & Loss account from Revaluation Reserve.

3. Impairment of Assets

The carrying amounts of cash Generating unit / assets are reviewed at Balance sheet date to determine whether there is any indication of impairment , if any such indication exists , the recoverable amount is estimated as the higher of net selling price and value in use . Impairment loss is recognized wherever carrying amount exceeds recoverable amount.

4. Investment:

Investments are stated at cost, however, provision to diminution in value of shares if any, other than temporary in nature has not been made in the accounts.

5. Recognition of Income & Expenditure:

a. Income and expenses, unless specified otherwise, are recognised on accrual basis.

b. Sales are net of Taxes if any .

6. Inventories:

a) Stores, Spares and Packing materials are valued at cost on FIFO basis.

b) There is no Finished Goods of Tea as well as green leaf at the year end, hence valuation of the finished products at realizable value , is not applicable. are recognised only if there is reasonable certainty that sufficient future taxable income will be available against which suCcohm dpeilfeedr brey d: Dtaioxn aGslsobeatls Solutions Li will be realised. Such assets are reviewed as at each Balance Sheet date to reassess reliability thereof.

7. Excise Duty and Cess:

No tea is manufactured during the year .Hence, no Excise duty and Cess on manufactured tea, are provided in the accounts. Cess on green leaf for the year has been provided in the accounts

8. Retirement Benefits:

Liability for gratuity & leave encashment is accounted for on cash basis.

9. Borrowing Cost:

Borrowing cost is charged as expenses in the year in which these are incurred.

10.Contingent Liability :

Contingent Liabilities are generally not provided for in the accounts and are separately shown in the notes to accounts.


Mar 31, 2009

1. General:

a) These accounts have been prepared on the historical cost basis and on the basis of going concern.

b) Accounting policies not specifically stated to otherwise are consistent and are in consonance with generally accepted accounting principles.

2. Fixed Assets:

a. Fixed Assets other than revalued assets are stated at cost less depreciation.

b. Revalued assets are shown at net current Replacement Cost.

c. Expenditure on extension of tea planting is capitalised and the same is shown under the head Land (leasehold) and Development Account.

3. Depreciation: ,

Depreciation is provided On straight-line method at the rates and in the manner specified in Schedule XIV (as amended) to the Companies Act 1956,and Increase in value of fixed assets due to revaluation is depreciated on straight-line method at the rates specified in the Schedule - XIV to the Companies Act 1956 and transferred to Profit & Loss account from Revaluation Reserve.

4. Investment:

Investments are stated at cost, however, provision to diminution in value of shares if any, other than temporary in nature has not been made in the accounts.

5. Recognition of Income & Expenditure:

a. Income and expenses, unless specified otherwise, are recognised on accrual basis.

b. Sales are net of Taxes if any.

6. Inventories:

a) Stores, Spares and Packing materials are valued at cost on FIFO basis.

b) There is no Finished Goods of Tea at the year end , hence valuation thereof at realizable value , is not applicable.

c) Flats held as Stock in Trade are valued at cost or realisable value whichever is lower.

7. Taxes on Income:

Current Tax is determined as the amount of Tax payable in respect of Taxable Income for the period based on applicable tax rates and laws. Deferred tax is recognised on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods and is measured using Tax rates and laws that have enacted or substantively enacted as on Balance Sheet date. Deferred tax assets are recognised only if there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets will be realised. Such assets are reviewed as at each Balance Sheet date to reassess reliability thereof.

8. Excise Duty and Cess:

No tea is manufactured during the year .Hence, no Excise duty and Gess on manufactured tea, are provided in the accounts. Cess on green leaf for the year has been provided in the accounts

9. Retirement Benefits:

Liability for gratuity & leave encashment is accounted for on cash basis.

10. Borrowing Cost:

Borrowing cost is charged as expenses in the year in which these are incurred.

11. Contingent Liability:

Contingent Liabilities are generally not provided for in the accounts and are separately shown in the notes to accounts.

 
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